How to profit from peer-to-peer lending

‘Alternative finance’ is an internet-era rival to traditional banks. There are opportunities for smart investors, says David C Stevenson.

The financial crisis of 2008 was good news for one area of the finance industry – ‘alternative finance’. This catch-all term covers activities such as ‘peer-to-peer (P2P) lending’ and ‘crowdfunding’ – in short, companies that enable individuals and firms to raise money while cutting out banks. While companies such as P2P pioneer Zopa already existed, widespread disenchantment with traditional banks, and the low interest rates on offer, brought a surge of interest in Zopa and rivals such as RateSetter and [...]

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